Ripple Labs’ recent victory against the U.S. Securities and Exchange Commission (SEC) has been seen as a blow to the regulator’s efforts to regulate the crypto industry.
However, experts caution that this ruling may not be a definitive victory for the industry as a whole.
In a groundbreaking decision on July 13, U.S. district court Judge Analisa Torres ruled that XRP, Ripple’s cryptocurrency, is not a security when sold to the general public.
This ruling was met with excitement from XRP tokenholders and led to a significant surge in the token’s price.
Industry leaders, including those from crypto exchanges Coinbase and Binance, hailed the decision as a positive development for their ongoing lawsuits.
Luke Martin, the founder of crypto investment firm Venture Coinist, believes that this ruling deals a substantial blow to the SEC and its Chair, Gary Gensler.
He sees it as a positive sign for the industry and its fight against allegations of offering unregistered securities.
While many celebrated the ruling, several digital asset lawyers urge caution.
READ MORE: Elon Musk Launches xAI: A New Venture to Unravel the Mysteries of the Universe
They highlight that the summary judgment is only partial and does not establish a binding precedent.
It may serve as persuasive commentary for future courts but does not guarantee consistent rulings.
Furthermore, there is a possibility that the SEC may appeal the decision, and a higher court could overturn the ruling made by Judge Torres.
Despite these warnings, some experts believe that the SEC may face challenges if it decides to appeal.
Justin Slaughter, Paradigm policy director and former SEC adviser, suggests that the Supreme Court has recently been critical of government agencies and may not miss the opportunity to scrutinize the SEC’s actions.
Ripple still faces the SEC’s claim that its CEO, Brad Garlinghouse, and co-founder, Chris Larsen, “aided and abetted” the institutional sale of XRP.
The SEC alleges that $728 million worth of XRP was sold through institutional sales. This claim was set aside by Judge Torres and will likely be contested at trial.
In conclusion, while Ripple’s victory in the XRP case is seen as a setback for the SEC’s regulatory efforts, it is not a definitive win for the entire crypto industry.
The ruling may be subject to appeal, and future courts may not necessarily follow Judge Torres’ decision.
The legal battle between Ripple and the SEC is far from over, and there are still significant challenges to overcome.
Other Stories:
United States DoJ Moves $299 Million Worth of Bitcoin in Recent Transactions
Bitcoin ETF Approval Could Act as Government’s ‘Seal of Approval’
